If the trade surplus has fallen, which of the following is a possible explanation?
a. The real exchange rate rose.
b. Foreign income fell.
c. Domestic income fell.
d. The foreign price level rose.
Ans: c. Domestic income fell.
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Net worth is
A) a measure of a firm's profits. B) the difference between a firm's assets and liabilities. C) part of stockholders' equity. D) listed on the asset side of a firm's balance sheet.
Production functions A and B result in the same average total costs of production. However, production function A is twice as capital intensive as production function B. In this case, all else constant:
A) marginal costs will be higher in A than they are in B. B) marginal costs will be higher in B than they will in A. C) because total costs are equal, marginal costs will be equal for the two production functions as well. D) there is no way to say anything about the relative marginal costs of production in the two production functions without additional information.
A positive temporary supply side shock will:
A. increase the level of potential output in the long run. B. decrease the price level in the long run. C. increase the price level in the long run. D. have no effect in the long run.
In the United States the underground economy has been valued at around:
A. 7 percent or 8 percent of GDP. B. 2 percent or 3 percent of GDP. C. 5 percent to 6 percent of GDP. D. 9 percent to 10 percent of GDP.